2% interest Subvention approved on KCC loans, financial implication of Rs. 2.5 Cr

SHILLONG, Sep 24: The Meghalaya cabinet on Thursday approved the proposal of the Agriculture department to reimburse two percent of interest from the loans taken by farmers availed through Kisan Credit Card (KCC) loans.

Chief Minister, Conrad Sangma speaking to reporters after the Cabinet meet said, “There will be interest subvention from the state government of two percent.

This will apply to farmers who have taken the loan and repay the loan along with the interest and reimbursement of two percent of the amount that comes out from the state government side.”

Sangma said that this has been done as one of the steps towards supporting the farmers during COVID-19. 

The Chief Minister said that farmers and a lot of the public in general have faced alot of challenges during the pandemic and the subventions is one of the measures taken by the government. 

Sangma also estimated that the subvention will have a financial implication of Rs. 2.5 crore to reimburse two percent interest.

The Chief Minister who also holds the Finance portfolio also informed that in the future year also the government wants to encourage farmers to take more of these loans. 

“Therefore, if it doubles up in the coming years, we do expect that it may touched Rs. 3 to Rs. 5 crore but for this financial year, we expect about Rs. 2.5 crore.”

He informed that so far 19,000 farmers of the state are availing the KCC loans.